Down but not out, US dollar suffers from debt debacle

TOKYO: The US debt standoff has shaken confidence in Washington’s fiscal management and in the dollar as a reliable global currency, but, say analysts in Asia, there is no credible alternative to the greenback.

China and Japan, the biggest holders of US Treasuries, slammed the political gridlock on Capitol Hill and warned that a narrowly averted debt default would have destabilized the global economy—threatening their vast $2.4 trillion investment in US debt.